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Essay

Macro Economic Policy

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Issue:

Social Issues

 

Written by:

Carolyn N

 

Date added:

September 12, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1295

 

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2754 times

 

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Essay content:

Two basic modes of thought on the subject have pervaded public policy since World War II: supply-side and demand-side economics. Demand-side economics is generally known as Keynesianism, named after the English economist John Maynard Keynes. He believed that governments should force interest rates down by printing money and lending it from the central bank at a discount...
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He believed that governments should force interest rates down by printing money and lending it from the central bank at a discount. This would put more money in consumers' hands and encourage them to spend and consume more, thus creating an incentive for investment. This helped to solve some of the problems, but in the long run it is extremely inflationary, because with the increase of the money supply it becomes devalued...
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